Paramount Raises 2026 Production Guidance After Willesden Green Surprises

Paramount Resources Ltd., an oil and gas company, reported its second quarter 2026 financial and operating results. The company increased its 2026 production guidance due to strong performance from its Willesden Green asset.

In the second quarter, Paramount's sales volumes averaged 47,279 Boe/d (49% liquids). This represents a higher liquid content than previously forecasted. At Willesden Green, the Alhambra Plant saw record runtime in the second quarter after a planned plant outage in May.

Paramount's capital expenditures for the second quarter totaled $297 million. The company used this money to commission and start-up the second phase of its Alhambra Plant at Willesden Green, which doubled the facility's raw handling capacity. They also drilled 11 Duvernay wells and brought on production from ten Duvernay wells.

At Sinclair Montney, Paramount completed two appraisal wells that tested both the Upper and Lower benches of the Montney formation. The results surpassed expectations with test rates reaching 34 MMcf/d and 25 MMcf/d for dry natural gas over a three-day period. This represents the highest publicly recorded test rate for these formations in Alberta.

The company increased its core land position at Sinclair to more than 170,000 net acres after recent acquisitions. This will allow Paramount to increase production levels in the future. Approximately 48% of the company's forecast natural gas sales volumes are expected to be priced at diversified markets outside of AECO for the remainder of 2026.

Paramount has hedged 7,000 Bbl/d of liquids at an average WTI price of C$109.19/Bbl for the second half of 2026 and 6,000 Bbl/d of liquids at an average WTI price of C$100.34/Bbl for 2027. At June 30, 2026, the company had $449 million in cash and undrawn credit facilities totaling $750 million.